To World-Class Racing Bikes That Set The Standard For Speed And Aerodynamics. In 1981, They Were The First To Mass-Produce Mountain Bikes, With The Iconic Stumpjumper, Which Has Been Featured In The Smithsonian Institution.

Today Specialized Bicycle Components Inc., generally known as Specialized, has a wide range of bicycles, from entry-level to world-class racing bikes that set the standard for speed and aerodynamics. In 1981, they were the first to mass-produce mountain bikes, with the iconic Stumpjumper, which has been featured in the Smithsonian Institution. Today Specialized has many product categories for their bicycles, from entry-level bikes for kids through the state-of-the-art S-Works line. Each category has a range of price points that keep the brand competitive. The prices are never at the bottom of any given category. Their value proposition implies quality worth paying a little extra for. As with anything, you really need to know your consumer what we call the riders. And riders are looking for a very specific experience. So, let's say I'm a mountain biker. There are actually different types of mountain riding within the idea of mountain biking. Some people are more concerned with climbing as fast as possible, some people are concerned with going downhill as fast as possible, some people want to do it little bit of both. So, within the broad category of mountain biking, you have to know your consumer within there and what they're looking for from their product. And then, once you neck that down a little bit more, then there's different spending levels -- you know, how much are you willing to spend, how much do you have, what kind of quality materials are you looking for? And that will tier your pricing within a very specific experience, as well. So, you start quite broad with cycling, then you get down to a little bit more specific experience, neck it down even more, and then you have pricing structure within that very specific experience. Specialized also offers affordable, yet premium, products for kids. Biking is often a family affair, and the earlier Specialized earns the loyalty of a consumer, the more likely they'll stay with the brand. You don't want to put your kid on something that's not gonna stand up and is not gonna take him running over a stick or a curb or whatever he or she may do. So the quality level that we bring to the cycling industry is super important, and that applies to children, as well. And also you want them to know your brand from the get-go. Starting from a very young age, they should know that we stand for quality, that we stand for experience, and we want them to have that experience whether they're 5 or 50. Cyclists expect safety, reliability, and comfort. Beyond that, what they're looking for in a bike can vary greatly. Those who shop based on price alone are less likely to pay a premium for innovation. The more experienced or well-researched a rider is, the more likely they'll pay for features that add particular qualities to their experience. The very enthusiastic, the very serious cyclists are typically paying for weights and technology. The more money you spend, the faster you can go with lighter-weight materials. So, on the road-bike side of things, the more money you spend, the faster you are going to get from Point "A" to Point "B," and we're gonna do it through aerodynamic research, lots of different high-end carbon-fiber materials, and then making sure that those blends properly. When you have an experienced cyclist, they know what they're paying for, they know that the quality is going to be there, they know that grams actually make a difference. For sure, they will pay, and they expect to pay, more for just a little bit of extra performance. A relentless drive for innovation at all levels of their product offerings has given Specialized Bicycle Components an edge on the competition that riders are happy to pay for. In the case of their top-of-the-line bikes, which rank as some of the best in the world, the product is well worth the premium cost of admission for the ultimate riding experience.

1. SBC's value proposition suggests that the quality of its products is worth "paying a little extra for." A pricing tactic that plays on psychological principles that attach quality attributions to higher-priced goods is often referred to as ________ pricing.

Multiple Choice:

• prestige
• reference
• high/low
• captive
• variable

2.As the video explains, SBC primarily targets experienced, knowledgeable cyclists that seek a particular biking experience. The price elasticity of demand for consumers within this target market is most likely

Multiple Choice:

• less than 1
• greater than 1
• equal to 1

3.Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs

Multiple Choice

• product line pricing.
• competitor-based pricing.
• odd/even pricing.
• penetration pricing.
• high/low pricing.